Nvidia beats Q1 consensus, raises Q2 guidance to $91 billion

Clay Webster FXStreet

Nvidia (NVDA) easily beat consensus for the fiscal first quarter, though the share price was largely unimpressed afterhours on Wednesday.

Founder and CEO Jensen Huang’s company posted adjusted EPS of $1.87, beating the consensus by 10 cents. Nvidia’s sales hit $81.6 billion in the quarter, $2.65 billion ahead of consensus.

Nvidia was able to achieve this feat by producing $75.2 billion in data center revenue, up an impressive 92% from a year ago.

And overall revenue might have risen 85% from a year ago, but Jensen doesn’t expect the AI revolution to end anytime soon. Nvidia is guiding for $91 billion in revenue in Q2. That’s about $4 billion above consensus and almost $10 billion higher than Q1.

Besides all that, Jensen says the company has approved an additional $80 billion worth of share buybacks and raised Nvidia’s quarterly dividend from $0.01 to $0.25.

However, the stock doesn’t seem to know what to do. Afterhours it fell from $223.47 to $216.23, then it jumped to just under $227 before easing back to near its original regular session closing price.

Nvidia Q1 earnings afterhours 1-minute chart — NVDA 1-minute chart

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Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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